Market Update - 27 December 2022

EUR/USD rejected at 1.0665, remains steady above 1.0640. Euro rally hits resistance at 1.0665 and retreats to 10640. The common currency remains bid against a softer USD. News that China is planning to scrap restrictions on inbound travelers has boosted risk appetite. (FXStreet)

USD/JPY is treading listlessly amid a quiet start to the holiday-shortened week. US Dollar drops with Treasury bond yields amid China-led risk-on mood. USD/JPY bulls need acceptance above 133.00 to resume the recovery. (FXStreet)

USD/CAD has surrendered the previous week’s low around 1.3560 amid weakness in the US Dollar Index. A decline in the US PCE and US Durable Goods Orders data has cemented expectations for lower inflation ahead. An increment in oil prices led by supply worries on expected cuts from Russia has supported the Canadian Dollar. USD/CAD is expected to deliver more weakness below 1.3550 amid a Double Top formation. (FXStreet)

USD/JPY retreats from one-week high to snap three-day uptrend. Downside break of weekly support line adds strength to bearish bias. 100, 200 EMAs add to the upside filters. (FXStreet)

US Dollar Index takes offers to extend three-day downtrend. Two-week-old ascending support line, oversold RSI conditions challenge immediate downside. Sellers need validation from 103.75 before eyeing the monthly low. Key HMAs, weekly resistance line probe DXY bulls. (FXStreet)

GBP/JPY is approaching 161.00 as BOJ sees a continuation of easy monetary policy. BOJ Governor sees rising labor demand ahead and a shift in wage-setting behavior by the firms. The BOE needs to slow down the interest rate hike pace as households are failing to segment monthly installments. (FXStreet)

AUD/USD retreats from intraday high but stays positive for the second consecutive day. China Industrial Profits drop 3.6% during January-November period, easing Covid restrictions keep sentiment positive. Mixed US data weighs on hawkish Fed bets, US Dollar during holiday-thinned markets. (FXStreet)

NZD/USD seesaws inside immediate trading range, prints mild gains. China Industrial Profits deteriorate, Beijing scraps Covid quarantine rule for inbound travelers. US Dollar Index prints three-day downtrend as softer US statistics challenge hawkish Fed bets. (FXStreet)

Gold price pares intraday gains but stays on the way to post the second monthly gain. China data consolidates recent optimism amid holiday-thinned markets. XAU/USD stays on the front foot as softer US Dollar weighs on Fed bets, China-linked news favor Gold buyers. (FXStreet)

Silver price has witnessed a sheer upside led by strength in risk-on profile. A slippage in the US PCE Price Index has trimmed US Dollar Index’s appeal. The RSI (14) has attempted to shift in the bullish range of 60.00-80.00. (FXStreet)

Source: FXStreet, DailyFX

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